1 Table of Contents 2
1.1 List of Tables 4
1.2 List of Figures 7
2 Introduction 9
2.1 What is This Report About? 9
2.2 Methodology 9
2.3 Profile of Survey Respondents 10
3 Executive Summary 14
3.1 Downstream and Midstream Oil and Gas Industry Expect an Early Recovery of Global Economy 14
3.2 Downstream and Midstream Oil and Gas Buyers Are More Optimistic than Suppliers about Revenue Growth in the Next Year 14
3.3 Small and Medium-Sized Companies Tend to Increase Procurement Budgets While Large Companies Tend to Reduce 15
3.4 Planning Difficulty, Falling Demand and Rising Prices Continue to Daunt Downstream and Midstream Companies 15
3.5 Suppliers Should Increase Their Awareness and Align Capabilities with Buyer Needs to Gain Business During the Recession 16
4 Economic Outlook and Confidence 17
4.1 Global Economy Recovery Expectations 17
4.2 Revenue Growth Expectations 21
5 Downstream and Midstream Oil and Gas Industry Investment Outlook 26
5.1 Fastest and Slowest Growing Markets 26
5.2 M&A Activity Predictions 31
5.3 Suppliers’ Industry Outlook 36
6 Recession: Threats and Opportunities for the Downstream Oil and Gas Industry 40
6.1 Leading Business Concerns Due to Recession 40
6.2 Key Actions to Overcome Business Threats 44
6.3 Key Actions to Maintain and Win Buyer Business 49
6.4 Leading Recession-Related Business Opportunities 58
7 Downstream and Midstream Oil and Gas Industry Buyer Spend Activity 63
7.1 Annual Procurement Budgets 63
7.2 Expected Change in Procurement Spend 68
7.3 Expected Change in Spend By Product and Service Category 73
8 Procurement Behaviors and Strategies and the Impact of Recession 79
8.1 Critical Success Factors for Supplier Selection 79
8.2 Current Effects of Recession On Procurement Objectives 82
8.3 Expected Future Effects of Recession On Procurement Objectives 87
8.4 The Effects of Recession On Procurement Strategy 92
9 Appendix 100
9.1 Full Survey Results-Closed Questions 100
9.2 Methodology 108
9.3 Contact Us 109
9.4 About Global Markets Direct 109
9.5 Disclaimer 109
1.1 List of Tables
Table 1: Count of Global Downstream and Midstream Oil and Gas Industry Survey Respondents By Company Type (Number of Respondents), 2009 Industry Survey 10
Table 2: Buyer Respondents By Job Role (% Buyer Respondents), Global Downstream and Midstream Oil and Gas Industry, 2009 10
Table 3: Buyer Respondents By Organizations’ Global Turnover (% Buyer Respondents), Global Downstream and Midstream Oil and Gas Industry, 2009 11
Table 4: Buyer Respondents By Organizations’ Total Number of Employees (% Buyer Respondents), Global Downstream and Midstream Oil and Gas Industry, 2009 11
Table 5: Supplier Respondents By Job Role (% Supplier Respondents), Global Downstream and Midstream Oil and Gas Industry, 2009 12
Table 6: Supplier Respondents By Organizations’ Global Turnover (% Supplier Respondents), Global Downstream and Midstream Oil and Gas Industry, 2009 12
Table 7: Supplier Respondents By Organizations’ Total Number of Employees (% Supplier Respondents), Global Downstream and Midstream Oil and Gas Industry, 2009 13
Table 8: Global Downstream and Midstream Oil and Gas Industry Expectations of Global Economy Recovery Timings By Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 19
Table 9: Global Downstream and Midstream Oil and Gas Industry Expectations of Global Economy Recovery Timings By Company Type: Midstream Oil and Gas Storage and Transportation Businesses, Downstream Oil and Gas Refiner / Retailers, Midstream / Downstream Oil and Gas Suppliers (% All Respondents), 2009 21
Table 10: Company Revenue Growth Optimism By Global Downstream and Midstream Oil and Gas Industry Company Type: Midstream Oil and Gas Storage and Transportation Businesses, Downstream Oil and Gas Refiner / Retailers, Midstream / Downstream Oil and Gas Suppliers (% All Respondents), 2009 23
Table 11: Company Revenue Growth Optimism in the Global Downstream and Midstream Oil and Gas Industry By Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 25
Table 12: Midstream Oil and Gas Storage and Transportation Business and Downstream Oil and Gas Refiner/ Retailer Industry: Market Predictions of Fastest and Slowest Growing Regions (% Buyer Respondents) 28
Table 13: Midstream / Downstream Oil and Gas Supplier Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Midstream / Downstream Oil and Gas Supplier Respondents), 2009 30
Table 14: Key Growth Areas in the Global Downstream and Midstream Oil and Gas Industry (Analysis of Supplier Respondents), 2009 37
Table 15: Key Growth Areas in the Global Downstream and Midstream Oil and Gas Industry (Analysis of Senior Level Supplier Respondents), 2009 38
Table 16: Key Declining Areas in the Global Downstream and Midstream Oil and Gas Industry (Analysis of Supplier Respondents), 2009 39
Table 17: Key Declining Areas in the Global Downstream and Midstream Oil and Gas Industry (Analysis Senior-Level Supplier Respondents), 2009 39
Table 18: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer Vs. Midstream / Downstream Oil and Gas Supplier: Leading Business Concerns for the Period 2009-2010 Among Global Downstream and Midstream Oil and Gas Industry Buyers and Suppliers (% All Respondents), 2009 43
Table 19: Leading Business Concerns for the Period 2009-2010 Among Global Downstream and Midstream Oil and Gas Industry Buyers and Suppliers By Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 44
Table 20: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 (Analysis of All Respondents) 45
Table 21: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 – Senior-Level Responses Only (Analysis of CEO / MD / Board-Level Respondents) 46
Table 22: Most Important Actions Being Implemented By Midstream / Downstream Oil and Gas Suppliers to Overcome Leading Business Concerns in 2009-2010 in the Global Downstream and Midstream Oil and Gas Industry (Analysis of Midstream / Downstream Oil and Gas Supplier Respondents), 2009 47
Table 23: Most Important Actions Being Implemented By Midstream Oil and Gas Storage and Transportation Businesses, Downstream Oil and Gas Refiner / Retailers to Overcome Leading Business Concerns in 2009-2010 in the Global Downstream and Midstream Oil and Gas Industry (Analysis of Midstream Oil and Gas Storage and Transportation Businesses, Downstream Oil and Gas Refiner / Retailers Respondents), 2009 48
Table 24: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Downstream and Midstream Oil and Gas Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 51
Table 25: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Downstream and Midstream Oil and Gas Industry: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% Buyer Respondents), 2009 53
Table 26: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Downstream and Midstream Oil and Gas Industry: Analysis of Buyer Respondents By Company Turnover (% Buyer Respondents), 2009 54
Table 27: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Downstream and Midstream Oil and Gas Industry: Analysis of All Buyer Respondents By Procurement Budget (% Buyer Respondents), 2009 55
Table 28: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Downstream and Midstream Oil and Gas Industry: Analysis of All Buyer Respondents By Region (% Buyer Respondents), 2009 57
Table 29: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Downstream and Midstream Oil and Gas Industry: Analysis of All Buyer Respondents By Purchasing Decision Seniority (% Buyer Respondents with Purchasing Decision Influence), 2009 58
Table 30: Leading Business Opportunities During the Recession in the Global Downstream and Midstream Oil and Gas Industry (Analysis of All Respondents), 2009 59
Table 31: Leading Business Opportunities During the Recession in the Global Downstream and Midstream Oil and Gas Industry (Analysis of CEO / MD / Board-Level Respondents), 2009 60
Table 32: Leading Business Opportunities for Midstream / Downstream Oil and Gas Suppliers During the Recession in the Global Downstream and Midstream Oil And Gas Industry (Analysis of Supplier Respondents), 2009 61
Table 33: Leading Business Opportunities for Midstream Oil and Gas Storage and Transportation Businesses, Downstream Oil and Gas Refiner / Retailers During the Recession in the Global Downstream and Midstream Oil and Gas Industry (Analysis of Buyer Respondents), 2009 62
Table 34: Annual Procurement Budgets in US$ in the Global Downstream and Midstream Oil and Gas Industry: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% All Buyer Respondents), 2009 65
Table 35: Annual Procurement Budgets in US$ in the Global Downstream and Midstream Oil and Gas Industry By Region (% All Buyer Respondents), 2009 67
Table 36: Expected Change in Spend On Products and Services in the Global Downstream and Midstream Oil and Gas Industry Over the Next 12 Months: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% All Buyer Respondents), 2009 70
Table 37: Expected Change in Spend On Products and Services in the Global Downstream and Midstream Oil and Gas Industry Over the Next 12 Months By Region (% All Buyer Respondents), 2009 73
Table 38: Future Change in Spend in the Global Downstream and Midstream Oil and Gas Industry By Product and Service Category: Expected Increase or Decrease Over the Next 12 Months (% Buyer Respondents), 2009 75
Table 39: Critical Success Factors for Selecting a Downstream and Midstream Oil and Gas Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 82
Table 40: Current Effects of Recession On Procurement Objectives and Priorities in the Global Downstream and Midstream Oil and Gas Industry: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% All Buyer Respondents), 2009 85
Table 41: Current Effects of Recession On Procurement Objectives and Priorities in the Global Downstream and Midstream Oil and Gas Industry By Company Turnover (% All Buyer Respondents), 2009 86
Table 42: Expected Changes in Procurement Strategy in the Global Downstream and Midstream Oil and Gas Industry to Drive Value Across the Business Due to Recession: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% All Buyer Respondents), 2009 95
Table 43: Expected Changes in Procurement Strategy in the Global Downstream and Midstream Oil and Gas Industry to Drive Value Across the Business Due to Recession: All Buyers By Company Turnover (% All Buyer Respondents), 2009 95
Table 44: Expected Changes in Procurement Strategy in the Global Downstream and Midstream Oil and Gas Industry to Drive Value Across the Business Due to Recession: All Buyers By Purchasing Decision Seniority (% All Buyer Respondents Purchasing Decision Influence), 2009 96
Table 45: Expected Changes in Procurement Strategy in the Global Downstream and Midstream Oil and Gas Industry to Drive Value Across the Business Due to Recession: All Buyers By Region (% All Buyer Respondents), 2009 98
Table 46: Downstream and Midstream Oil and Gas Company Attitudes and Approaches to Existing Procurement Practices: Level of Agreement to the Following Five Statements (% Buyer Respondents), 2009 99
Table 47: Full Survey Results - Closed Questions 100
1.2 List of Figures
Figure 1: Leading Business Concerns for the Period 2009-2010 Among Global Downstream and Midstream Oil and Gas Industry Buyers and Suppliers (% All Respondents), 2009 16
Figure 2: Global Downstream and Midstream Oil and Gas Industry Expectations of Global Economy Recovery Timings (% All Respondents), 2009 18
Figure 3: Global Downstream and Midstream Oil and Gas Industry Expectations of Global Economy Recovery Timings By Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 19
Figure 4: Global Downstream and Midstream Oil and Gas Industry Expectations of Global Economy Recovery Timings By Company Type: Midstream Oil and Gas Storage and Transportation Businesses, Downstream Oil and Gas Refiner / Retailers, Midstream / Downstream Oil and Gas Suppliers (% All Respondents), 2009 20
Figure 5: Company Revenue Growth Optimism in the Global Downstream and Midstream Oil and Gas Industry (% All Respondents), 2009 22
Figure 6: Company Revenue Growth Optimism By Global Downstream and Midstream Oil and Gas Industry Company Type: Midstream Oil and Gas Storage and Transportation Businesses, Downstream Oil and Gas Refiner / Retailers, Midstream / Downstream Oil and Gas Suppliers (% All Respondents), 2009 23
Figure 7: Company Revenue Growth Optimism in the Global Downstream and Midstream Oil and Gas Industry By Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 24
Figure 8: Midstream Oil and Gas Storage and Transportation Business and Downstream Oil and Gas Refiner / Retailer Industry: Market Predictions of Fastest and Slowest Growing Regions (% Buyer Respondents) 27
Figure 9: Midstream / Downstream Oil and Gas Supplier Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Midstream / Downstream Oil and Gas Supplier Respondents), 2009 29
Figure 10: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Midstream Oil and Gas Storage and Transportation Business Industry (% Midstream Oil and Gas Storage and Transportation Business Industry Respondents), 2009 33
Figure 11: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Downstream Oil and Gas Refiner / Retailer Industry (% Downstream Oil and Gas Refiner / Retailer Industry Respondents), 2009 35
Figure 12: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Midstream / Downstream Oil and Gas Supplier Industry (% Midstream / Downstream Oil and Gas Supplier Industry Respondents), 2009 36
Figure 13: Leading Business Concerns for the Period 2009-2010 Among Global Downstream and Midstream Oil and Gas Industry Buyers and Suppliers (% All Respondents), 2009 41
Figure 14: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer Vs. Midstream / Downstream Oil and Gas Supplier: Leading Business Concerns for the Period 2009-2010 Among Global Downstream and Midstream Oil and Gas Industry Buyers and Suppliers (% All Respondents), 2009 42
Figure 15: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Downstream and Midstream Oil and Gas Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 50
Figure 16: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Downstream and Midstream Oil and Gas Industry: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% Buyer Respondents), 2009 52
Figure 17: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Downstream and Midstream Oil and Gas Industry: Analysis of All Buyer Respondents By Region (% Buyer Respondents), 2009 56
Figure 18: Annual Procurement Budgets in US$ in the Global Downstream and Midstream Oil and Gas Industry: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% All Buyer Respondents), 2009 64
Figure 19: Annual Procurement Budgets in US$ in the Global Downstream and Midstream Oil and Gas Industry By Company Turnover (% All Buyer Respondents), 2009 66
Figure 20: Annual Procurement Budgets in US$ in the Global Downstream and Midstream Oil and Gas Industry By Region (% All Buyer Respondents), 2009 67
Figure 21: Expected Change in Spend On Products and Services in the Global Downstream and Midstream Oil and Gas Industry Over the Next 12 Months: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% All Buyer Respondents), 2009 69
Figure 22: Expected Change in Spend On Products and Services in the Global Downstream and Midstream Oil and Gas Industry Over the Next 12 Months By Company Turnover (% All Buyer Respondents), 2009 71
Figure 23: Expected Change in Spend On Products and Services in the Global Downstream and Midstream Oil and Gas Industry Over the Next 12 Months By Region (% All Buyer Respondents), 2009 72
Figure 24: Future Change in Spend in the Global Downstream and Midstream Oil and Gas Industry By Product and Service Category: Expected Increase or Decrease Over the Next 12 Months (% Buyer Respondents), 2009 74
Figure 25: Future Change in Spend in the Global Downstream and Midstream Oil and Gas Industry By Product and Service Category: Expected Increase Over the Next 12 Months Among All Buyers (% All Buyer Respondents), 2009 76
Figure 26: Future Change in Spend in the Global Downstream and Midstream Oil and Gas Industry By Product and Service Category: Expected Increase Over the Next 12 Months Among All Buyers By Company Turnover (% All Buyer Respondents), 2009 77
Figure 27: Future Change in Spend in the Global Downstream and Midstream Oil and Gas Industry By Product and Service Category: Expected Increase Over the Next 12 Months Among All Buyers By Region (% All Buyer Respondents), 2009 78
Figure 28: Critical Success Factors for Selecting a Downstream and Midstream Oil and Gas Industry Supplier: Difference in Views, Buyers Vs. Suppliers (Net Difference in Ranking), Global, 2009 80
Figure 29: Critical Success Factors for Selecting a Downstream and Midstream Oil and Gas Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 81
Figure 30: Current Effects of Recession On Procurement Objectives and Priorities in the Global Downstream and Midstream Oil and Gas Industry (% All Buyer Respondents), 2009 83
Figure 31: Current Effects of Recession On Procurement Objectives and Priorities in the Global Downstream and Midstream Oil and Gas Industry: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% All Buyer Respondents), 2009 84
Figure 32: Likelihood of Future Change in Procurement Objectives in the Global Downstream and Midstream Oil and Gas Industry (% All Buyer Respondents), 2009 87
Figure 33: Likelihood of Future Change On Procurement Objectives in the Global Downstream and Midstream Oil and Gas Industry: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% All Buyer Respondents), 2009 88
Figure 34: Likelihood of Future Change On Procurement Objectives in the Global Downstream and Midstream Oil and Gas Industry By Company Turnover (% All Buyer Respondents), 2009 89
Figure 35: Expected Future Effects of Recession On Procurement Objectives and Priorities in the Global Downstream and Midstream Oil and Gas Industry (% All Buyer Respondents), 2009 90
Figure 36: Expected Future Effects of Recession On Procurement Objectives and Priorities in the Global Downstream and Midstream Oil and Gas Industry: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% All Buyer Respondents), 2009 91
Figure 37: Expected Future Effects of Recession On Procurement Objectives and Priorities in the Global Downstream and Midstream Oil and Gas Industry By Company Turnover (% All Buyer Respondents), 2009 92
Figure 38: Expected Changes in Procurement Strategy in the Global Downstream and Midstream Oil and Gas Industry to Drive Value Across the Business Due to Recession (% All Buyer Respondents), 2009 93
Figure 39: Expected Changes in Procurement Strategy in the Global Downstream and Midstream Oil and Gas Industry to Drive Value Across the Business Due to Recession: Midstream Oil and Gas Storage and Transportation Business Vs. Downstream Oil and Gas Refiner / Retailer (% All Buyer Respondents), 2009 94
Figure 40: Expected Changes in Procurement Strategy in the Global Downstream and Midstream Oil and Gas Industry to Drive Value Across the Business Due to Recession: All Buyers By Region (% All Buyer Respondents), 2009 97